TRENTON
- Criminal Justice Director Vaughn L.
McKoy announced that the Division of Criminal
Justice - Office of Insurance Fraud Prosecutor
has obtained an indictment charging a
Passaic County inmate with conspiracy,
insurance fraud, theft and tampering with
public records for his role in an automobile
insurance “give up” scam.

According to Insurance Fraud Prosecutor
Greta Gooden Brown, Serapio Paez, aka
Benito Caballero aka Lorenzo Cruz, 50,
currently incarcerated in the Passaic
County jail awaiting sentencing on federal
drug related charges, was charged with
conspiracy and insurance fraud (both 2nd
degree), as well as theft by deception
and tampering with public records or information
(both 3rd degree). If convicted of all
charges, Paez faces more than 20 years
in state prison and a criminal fine of
more than $300,000. Paez also faces the
possible civil insurance fraud fines.

The Hudson County Grand Jury indictment
alleges that between March 10 and July
1, 2004, Paez conspired to submit a fraudulent
auto insurance theft claim. An investigation
by the Division of Criminal Justice -
Office of Insurance Fraud Prosecutor determined
that Paez took possession of a 1999 Jeep
Cherokee, valued at more than $10,900.
According to the indictment, Paez then
turned the vehicle over to another individual
with the purpose to destroy it so that
the owner could submit an auto theft claim.

The investigation further revealed that
on March 18, 2004, Esther Mazara, 42,
Union City, Hudson County, falsely reported
to the Jersey City Police Department that
the Jeep Cherokee had been stolen and
subsequently submitted a phony auto theft
claim to the Metropolitan Property and
Casualty Insurance Company. Metropolitan
Property and Casualty paid Mazara more
than $10,900 for the claim. The Jeep Cherokee
was found burning in Philadelphia before
the date the owner reported she last saw
the Jeep. On Dec. 14, 2004, Mazara pleaded
guilty before Hudson County Superior Court
Judge Peter J. Vazaquez to a criminal
Accusation filed by the Office of Insurance
Fraud Prosecutor, charging her with insurance
fraud. Mazara was ordered in April 2005
to serve fifty hours of community service,
two years probation and pay restitution
and penalties.

State Investigator George Meyers, Jr.,
Civil Investigator Frank Crosson, and
Deputy Attorney General Christine A. Hoffman
were assigned to the investigation. DAG
Hoffman represented the Office of Insurance
Fraud Prosecutor before the Hudson County
Grand Jury. The matter was referred to
the Office of the Insurance Fraud Prosecutor
by Philadelphia law enforcement authorities.

The
indictment, which was handed up on Oct.
5, is merely an accusation. The defendant
is presumed innocent unless and until
proven guilty beyond a reasonable doubt.